Just one day after President Donald Trump slapped 25% tariffs on goods coming in from Canada and Mexico, the Trump administration has announced it would pause tariffs for one month on automobiles coming into the country from the two countries, The New York Times reports.
White House press secretary Karoline Leavitt read a statement from Trump at a press conference in which Trump explained that after talking with the three largest U.S. automakers that he had agreed to the one-month exemption on cars coming into the U.S. through an agreement between the three countries.
Additional tariffs that may impact the auto industry will still go into effect on April 2. When asked why the president offered only a one-month reprieve, Leavitt said Trump expects the automakers to move production back to the United States. The move was meant to spur the automakers into making the change.
The one-month reprieve came soon after Commerce Secretary Howard Lutnick told Bloomberg TV that the tariffs could be lowered on some products and that an announcement would be coming later today.
The New York Times reports that Lutnick said the president was “listening to the offers from Mexico and Canada,” and might consider giving certain sections of the market relief. Lutnick said Trump was thinking about “doing something in the middle,” adding, “So not 100% of all products, and not none.”
Whether Trump is thinking of reducing or pausing tariffs on other goods, such as softwood, gypsum and lime, which are key ingredients to building homes, was not clear.
The New York Times also reported that Trump wrote on Truth Social that he told Canadian Prime Minister Justin Trudeau that many people have died due to the illegal drug fentanyl coming over the border from Canada and Mexico and the situation hasn’t improved enough yet. However, data shows that only a small amount of fentanyl comes into the United States from Canada.
Lutnick and Canada’s finance minister are expected to continue discussions throughout the day to see if a larger agreement on tariffs could be reached. Trudeau, who placed reciprocal tariffs on U.S. goods coming into Canada, said he is open to considering selective tariff reductions or removal if the U.S. decides to remove or lower tariffs on specific Canadian goods.
